Harley Davidson

1
Harley Davidson

• Matthew Buchman
• Ember Foster
• Becca Hafner
• Melissa Henson
• Jessica Krantz

2
Outline

• Introduction Ember
• Silk - Melissa
• SWOT Matt
• Problems - Jessica
• Recommendations Becca
• QA

3
Introduction
4
Harley Facts

• Founded in 1903 by William Harley and Arthur
  Davidson
• 1920 largest motorcycle manufacturer in world
• 28,000 motorcycles per year in 67 countries

5
More Facts

• Employed about 6,000 people and supported over
  600 independently owned U.S. dealerships
• Headquartered in Milwaukee, Wisconsin
• manufacturing facilities - Wisconsin,
  Pennsylvania, and Missouri
• Wholly owned subsidiaries in Germany, the United
  Kingdom, Benelux, France and Japan

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Plan 2003

• Increase production capacity dramatically over
  eight years by the companys 100th anniversary

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1998

• Acquired a majority share of the Buell Motorcycle
  Company
• Successfully brought two new manufacturing
  facilities online
• Introduced a completely new twin-cam 88 engine
  into its Dyna and Touring motorcycle models.

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Organizational Structure

• 3 interlocking circles
• Create Demand (CDC)
• Produce Products Group (PPG)
• Provide Support (PSC)

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SiLK Implementation of Supply Management System
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SiLK

• Supplier Information Link
• Implementing procurement and supplier information
  system.

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SMS

• Supply Management System
• Goal of SMS
• Right Products
• Right Time
• Best Quality
• Lowest Cost

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Value Proposition

• Changes in people, processes, and technology.
• 5 year purchasing cost reduction of 34 million.
• Began by mapping as is processes.

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Value Proposition

• Mapped to be processes representing future
  visions.
• Request for quote (RFQ) submitted by eight
  suppliers
• Three finalists

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Provider 1

• Proposal was precise
• Natural affinity toward representatives
• Behind in functionality
• Aware of change management issues

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Provider 2

• Widely admired in industry
• Extremely professional
• Highest score on functionality
• Did not emphasize change management issues

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Provider 3

• Initial presentation was a disaster
• Scored high in functionality
• Weak focus on social dimensions

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SWOT ANALYSIS
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Strengths

• Brand name
• Management team
• Heritage

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Weaknesses

• Size of the SiL'K
• Rooted into their heritage rooted into their
  heritage

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Opportunities

• Better flow of supply
• Buell Motorcycles
• Market share increase due to older generations

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Threats

• Foreign competition
• Honda, Yamaha, Suzuki, and Kawasaki

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Problems
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• Risk Assessment Score

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Problems

• Implementation Risk
• Grand Scope of Project
• Past Encouraged Site Independence
• Large number of opinions involved

• Technology Risk
• Many IT improvements at once
• Unfamiliarity will require many hours in training
• How will it fit in with our current processes to
  offer enhancement

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Problems

• High Tension Between Innovation Control
• Rooted in Heritage Rooted in Old Processes
• Requisition of Radical Changes to Procedures

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Problems

• Create Supplier Relationships
• SMS Goal 70 time spent on Strategic Supply
  Activities

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Problems

• 5. Who should Harley-Davidson
• chose to partner with for the design and
• implementation of SiLK?

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Recommendations
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Recommendations
Management at Harley-Davidson needs to address
the high tension between innovation and control
throughout the company
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Recommendations

• Who should the SiLK team choose as their
  supplier and partner in implementing an
  enterprisewide procurement and supplier
  management system?
• Provider 1
• Provider 2
• Provider 3

Provider 1
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Evaluation of Providers Using a Quantitative
Approach Based on each providers self-rated
match to the technology and process requirements
outlined in the functional specification.
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Evaluation of Providers Using a Qualitative
Approach
Grades chosen to highlight the potential
providers understanding of Harley-Davidsons
current and future requirements. (L low M
medium H high)
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Recommendations

• Provider 1

• Understood Harley-Davidsons needs
• Change management and training processes were an
  integral part of its implementation
  methodology
• Cost advantage when compared to other provider
• Similar company culture

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Q A
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Question 1

• Profile HD's strengths and weaknesses.

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Question 2

• What was the driving force behind the need for a
  new supply process?

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Question 3

• What is the SiL'K supply system?  What are some
  of the proposed benefits?

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Question 4

• If you were management, which supplier would you
  choose and why?

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Question 5

• Why do you think it is taking such a long time
  for the SiL'K supply system to be installed? 
  What are some of managment's major concerns that
  must be addressed?